On 18 April, the Serious Fraud Office (SFO) announced its new 5-year strategy setting its direction of travel to 2029.  Under its new Director, Nick Ephgrave, the strategy aspires to make the SFO "the pre-eminent specialist, innovative and collaborative agency which leads the fight against serious and complex fraud, bribery and corruption." 

The strategy describes 4 outcomes: 

  1. To develop a highly specialised, engaged and skilled workforce.
  2. To be equipped to harness the technology and tools of a changing world.
  3. To combat crime effectively through intelligence, enforcement and prevention.
  4. To be a proactive, authoritative player in the global and domestic justice system.

The strategy sets out a series of actions the SFO will take to achieve the above outcomes, with associated commentary.  A number of key themes emerge, and we make the following observations: 

  • After high-profile failures of prosecutions in recent years due to issues with its disclosure process (as well as recent reports that the SFO has launched a review of past and present cases after uncovering problems with the software used in disclosure), it comes as no surprise that the strategy refers to intended improvements in this area.  The strategy notes the development of a new case management system, a new document management system, and upgrades to the SFO’s e-discovery platform guidance and training.  Notably, the strategy also makes clear that the SFO’s efforts in this regard will not only be inward-looking, but that it will “continue to push for a disclosure regime that is fit for today’s challenges”, perhaps reflecting an intention to reduce the “burden” placed on the SFO in relation to disclosure, as recently described by Nick Ephgrave.
  • The strategy sets a clear intention to better adapt to, and use, ever-changing technology in its casework, noting an intention to enhance the use of machine-learning and AI, to trial new investigative tools and to “set expectations for and develop core digital skills across all SFO roles”.  The Business Plan (annexed to the strategy) also indicates a wider ambition to “map emerging opportunities for the use of AI across the criminal justice system”.  Such ambition is commendable, and necessary, in a key area which all legal practitioners and those in criminal enforcement will be grappling with in the coming months and years.
  • The strategy calls for innovation across crime enforcement and prevention.  As might be expected, it notes the need to be “more open and innovative in pursuing alternatives to formal prosecution”, in light of the successful use of Deferred Prosecution Agreements - which have achieved big financial returns in recent years and have been a key calling-card for continued investment in the organisation.  The strategy also signals an intention to adopt new approaches, however, including by testing “new prevention methods through a pilot programme […] to cut serious fraud, bribery and corruption off at the source”, and by making “best use of the covert powers currently available to us or to our partners like the National Crime Agency (NCA) or the City of London Police”. 
  • The strategy also revisits ideas raised by the previous Director, Lisa Osofksy, of exploring options for incentivising whistle-blowers and improving the SFO’s ability to make use of assisting offenders.  The potential benefit of such initiatives to the SFO is clear.  Previous, unsuccessful attempts to promote financial incentives for whistle-blowers in particular, however, have made clear that legislative reform will be required before any such scheme can be adopted and that the SFO may also need to overcome certain cultural resistances to such an approach.  Whether this ambition effects any practical change therefore remains to be seen.
  • The Economic Crime and Corporate Transparency Act 2023 has widened the scope for criminal prosecutions of corporates (including via the creation of a new “failure to prevent fraud” offence; see our recent update on the Act here).  Nick Ephgrave has already laid clear his intention to be the first to prosecute someone under the new provisions of the Act and the strategy reiterates this intention.

There is, of course, much for the SFO to do to bring the plan set out in its strategy to fruition.  Nick Ephgrave has promised a bolder, more pragmatic and more proactive approach under his reign - and activity since his appointment supports that assertion.  There here has been an uptick in dawn raids and visible enforcement activity by the SFO since Ephgrave’s appointment, albeit focused on frauds impacting the general public and not yet involving the largest corporates which have historically formed the SFO’s prime targets.  Whether the SFO can maintain this momentum to overcome its recent issues and deliver against this ambitious strategy remains to be seen.

This post has been co-authored by Sam Aldous, Andrew Matheson and Nick Mills.